Accidents involving rental cars can be particularly challenging due to the multiple parties and layers of insurance involved. Whether you’re the driver of a rental vehicle or were hit by someone driving one, the claims process can involve additional steps compared to a typical accident with a privately owned car. Knowing how to respond effectively is important for protecting your rights and minimizing the risk of unnecessary financial liability.

Immediate Actions to Take After a Rental Car Accident

Prioritize Safety and Report the Incident

After a collision, assess the safety of everyone involved. If anyone appears injured, contact emergency services without delay. Move vehicles out of traffic if possible and wait in a safe area until help arrives. Notify law enforcement, even if the damage seems minor. An official police report helps document the incident and can be essential when resolving insurance matters.

Document the Scene and Gather Information

Thorough documentation is vital when dealing with rental vehicles. Capture clear photos of the damage to all vehicles, road conditions, traffic signs, and any visible injuries. Be sure to collect:

Driver’s licenses of all parties involved
Vehicle license plate numbers
Contact and insurance information for all drivers
Names and contact details of witnesses, if any

In cases involving rentals, it’s also helpful to take pictures of the rental agreement paperwork and any rental company branding visible on the vehicle.

Notify the Rental Car Company Promptly

Rental agreements usually require the renter to notify the company as soon as possible after an accident. Failing to do so may violate the terms of the agreement and result in fees or denial of certain protections. When you contact the rental company, be prepared to provide:

The date, time, and location of the accident
The names of the other parties involved
The police report number, if available
A description of what happened

The rental company may provide instructions for returning the vehicle, coordinating inspections, or working with insurers.

Determining Who May Be Financially Responsible

When the Renter Is at Fault

If the driver of the rental car is found to be at fault, financial responsibility may fall on one or more of the following sources:

The driver’s personal auto insurance, if it extends coverage to rental vehicles
Insurance coverage purchased from the rental company, such as a collision damage waiver (CDW) or supplemental liability protection
Credit card rental coverage, which may apply if the rental was paid with a qualifying card

Some personal policies exclude coverage for rental vehicles, especially for business-related rentals or certain classes of vehicles, so renters should check their policy terms in advance.

When the Other Driver Is at Fault

If another motorist caused the car accident, their auto liability insurance typically applies. A claim can be filed with their insurer to cover property damage, medical expenses, and related costs. However, disputes over fault may delay resolution, especially if the driver’s insurer questions their liability or coverage limits are low.

When Fault Is Shared

In some states, comparative fault laws may apply. This means that if both drivers share responsibility for the crash, any compensation may be reduced in proportion to the driver’s level of fault. Shared liability can also influence which insurance policies cover which portions of the damage.

Insurance Coverage Options That May Apply

Personal Auto Insurance

Many personal auto policies extend coverage to rental vehicles. This usually includes:

Liability coverage for injury or damage to others
Collision and comprehensive coverage for damage to the rented vehicle
Medical payments coverage or PIP, which may cover injury-related costs

Policyholders should confirm whether their existing coverage includes rentals and under what conditions. Some policies may exclude coverage for rentals used outside the country or for commercial purposes.

Insurance Offered by the Rental Company

Rental companies offer several optional protections, which may have been accepted or declined at the time of booking:

Collision Damage Waiver (CDW): Relieves the renter of financial responsibility for damage to the vehicle, subject to exclusions such as reckless driving or contract violations
Supplemental Liability Protection (SLP): Provides higher liability coverage limits
Personal Accident Insurance: Offers coverage for medical expenses and accidental death for the driver and passengers
Personal Effects Coverage: Covers belongings inside the vehicle

These protections may fill gaps left by personal auto insurance but do not always function like traditional insurance. They may be voided by policy violations, so it is important to understand the terms.

Credit Card Rental Car Coverage

Some credit cards offer secondary insurance when the card is used to pay for the rental. This coverage typically includes:

Reimbursement for vehicle damage or theft
Towing expenses
Loss-of-use charges imposed by the rental company

Terms vary widely, and coverage may be denied for specific vehicle types (e.g., luxury cars, trucks, or motorcycles) or international rentals. Cardholders must often decline the rental company’s CDW to activate credit card benefits.

Handling Claims and Working with Insurers

Filing a Claim

The process of filing a claim will depend on whose insurance is being used. If using your own insurer, contact them promptly with:

The rental agreement
The police report
Photos and notes from the scene
A copy of any communication with the rental company

If using the rental company’s coverage or a third party’s insurer, follow their instructions carefully and retain copies of all paperwork submitted.

Dealing with Loss of Use and Administrative Fees

Rental companies may charge fees for the time the vehicle is unavailable (known as “loss of use”), administrative costs, and diminished value after repairs. Insurance policies may not always cover these charges, especially if the coverage is secondary. It is important to review the rental agreement and consult with the insurer about which charges are reimbursable.

Disputes and Legal Considerations

Not all claims involving rental cars are straightforward. Disagreements may arise over who is liable, whether a waiver applies, or how much should be paid. Injured parties may also face difficulties recovering full compensation for medical expenses or property damage, especially if the responsible driver lacks adequate insurance.

Consulting a legal professional can help clarify liability, identify all available sources of coverage, and ensure compliance with important deadlines such as the statute of limitations for filing a personal injury claim.

Final Thoughts on Navigating Rental Car Accident Claims

Accidents involving rental cars can create confusion around who is responsible and what coverage applies. Knowing how to respond—documenting the scene, notifying the rental company, and understanding how your insurance works—can help avoid costly mistakes. The process may involve multiple insurers, contractual obligations, and unfamiliar terms, so taking the time to review your options and rights is important.

If you’re dealing with a rental car accident and have questions about your next steps, Thiry & Caddell LLP is available to discuss your concerns. You can reach our office at (251) 478-8880 to schedule a consultation and get informed guidance based on your specific situation.

How to Handle Car Accident Claims Involving Rental Cars